GST Registration Restoration Granted: Overdue Returns, Tax Payments, and Penalties Must Be Settled Within 45 Days

HC allowed GST registration restoration with specific conditions. Petitioner must file overdue returns, pay taxes and penalties within 45 days, and cannot use unutilized Input Tax Credit. Registration revival contingent on meeting prescribed requirements. Respondent instructed to facilitate return filing and portal modifications. Writ petition disposed of without costs.

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Issues:
Challenge of GST registration cancellation due to inability to file returns on time.

Analysis:
The petitioner challenged the cancellation of their GST registration, citing inability to file returns on time due to ill-health. The petitioner sought revocation of the cancellation order. The counsel for the petitioner referred to a previous judgment and contended that the petitioner should be entitled to similar relief. The Government Advocate representing the respondent accepted notice and agreed that directions similar to the previous judgment could be issued.

The High Court disposed of the writ petition with specific directions for the petitioner:
i. The petitioner was directed to file returns for the period before the cancellation, along with tax dues, interest, and fees for belated filing within 45 days.
ii. Payment of tax, interest, fine, etc., was not allowed from any unutilized Input Tax Credit (ITC) of the petitioner.
iii. Unutilized ITC could not be used until approved by a competent officer.
iv. Only approved ITC could be used for future tax liabilities.
v. The petitioner had to pay GST and file returns for the period after cancellation, declaring the correct value of supplies.
vi. Any earned ITC could only be utilized after approval by the respondent or a competent authority.
vii. Registration would be revived upon payment of tax, penalty, and return uploading.
viii. The respondent was instructed to make necessary changes in the GST Web portal architecture to facilitate filing of returns and payment by the petitioner.
ix. The respondent had 30 days to carry out the above instructions.

The restoration of GST registration was subject to fulfilling the specified conditions. The writ petition was disposed of with no order as to costs, and the connected miscellaneous petition was closed.

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